§ 368-b. State reimbursement to local health districts; chargebacks.\n1. Each approved local health district which enters into a contract\nwith the department of health pursuant to section three hundred\nsixty-four-a of this title shall submit to the department of health a\nquarterly report of expenditures for administrative expenses incurred in\nthe performance of such contract. The department of health shall review\nsuch expenditures and, upon approval, shall submit the report to the\ndepartment. Upon receipt of such approved report, there shall be paid\nto each such district\n (a) the amount of federal funds, if any, properly received or to be\nreceived on account of such expenditures; and\n (b) fifty per centum of the amount expended for such administrative\nexpenses, after first deducting therefrom any federal funds properly\nreceived or to be received on account thereof.\n 2. The department of health shall submit a quarterly report to the\ndepartment of expenditures for administrative expenses incurred by each\nof the state health districts in the performance of the cooperative\nagreement entered into pursuant to section three hundred sixty-four-a of\nthis title. Upon receipt of such report, the department shall deduct\nthe amount of federal funds, if any, properly received or to be received\non account of such expenditures from the total amounts reported for each\nsuch district Fifty per centum of the balance shall be apportioned\namong the public welfare districts served by such district in the ratio\nthat the total expenditures by each such public welfare district for\nmedical assistance for needy persons for the quarter bears to the total\nexpenditures by all such public welfare districts for such quarter. The\nproportionate share shall be deducted from the next payment due each of\nsuch public welfare districts pursuant to section three hundred\nsixty-eight-a of this title.\n
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